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Bibliographic Details
Main Authors: Feng, Xinwei, Wang, Lu
Format: Preprint
Published: 2024
Subjects:
Online Access:https://arxiv.org/abs/2411.17104
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Table of Contents:
  • We investigate two-barriers-reflected backward stochastic differential equations with data from rank-based stochastic differential equation. More specifically, we focus on the solution of backward stochastic differential equations restricted to two prescribed upper-boundary and lower-boundary processes. We rigorously show that this solution gives a probabilistic expression to the viscosity solution of some obstacle problems for the corresponding parabolic partial differential equations. As an application, the pricing problem of an American game option is studied.